Qualcomm to Raise Prices, Affecting Smartphone Market
Qualcomm has informed its customers of upcoming price increases, warning of a double-digit percentage rise. The hikes will apply to products shipped after September 1st.
Qualcomm is set to increase the prices of its products, according to a letter sent to customers on Friday. The company warned of a "percentage in the double digits" rise, which will take effect for products shipped after September 1st, Bloomberg reported.
The chip manufacturer cited ongoing component shortages as the reason for rising supplier costs, stating it has "exhausted its ability to absorb higher costs." Qualcomm also indicated it explored alternative suppliers before deciding on the price hikes.
The increase is expected to ripple through the market, particularly affecting smartphones, where Qualcomm chips are widely used. This move could lead to higher device costs for consumers as manufacturers pass on the increased expenses.
The announcement highlights broader supply chain challenges and rising material costs impacting the technology sector. Companies across various electronics industries relying on Qualcomm components may face similar pricing adjustments.